Sainsbury’s Bank expands into mortgages

Sainsbury’s Bank is launching mortgages especially designed and developed for the Sainsbury’s customer. The bank will offer residential home purchase mortgages and remortgages for first time buyers, lending into retirement for certain customers and for the self-employed, across the whole of the UK.

The range of fixed and variable rate products offers flexible features that allow overpayments, underpayments, and payment holidays.

Sainsbury’s Bank are also introducing a mortgage that comes with an added shopper reward. Both home purchase and remortgages include a unique reward scheme for supermarket customers. The mortgages reward the customer loyalty of Sainsbury’s shoppers, by letting them earn up to £200 a year (in vouchers) off their shopping, for two years.

The new range, which can be seen in detail at sainsburysbank.co.uk initially includes a two (fee and no fee options), and five-year fixed rate product, and a two-year tracker with loan-to-values (LTVs) of up to 90%, and it will also consider customers aged up to 70 years old.

Customers can contact the Bank direct over the phone and speak to our team of mortgage advisers, or apply through initial intermediary pilot broker partner, L&C Mortgages. Direct, non-advised online applications will be launched later this year.

Catherine More, Head of Mortgages Sainsbury’s Bank said: “Mortgages and grocery shopping are some of our customers’ biggest household expenditures and we’re uniquely placed to help them out with both.

“We’ve built our new mortgages in response to our customers’ needs, they told us they wanted to feel supported through the whole process, that they wanted the flexibility to pick the advice that suits them, and to receive a good deal.”

The launch marks the start of our expansion into the mortgage market. Over time we will review and add to our mortgage range, this will include launching buy-to-let as well as refining our entry product offers.

The intermediary channel is a preferred route for many of our customers and crucial to our expansion, so we’re also partnering with Legal & General’s Mortgage Club with a view to welcoming more brokers on board over the next twelve months.

Mortgage pricing has been set to ensure Sainsbury’s Bank products are competitive and affordable with rates starting from 1.34%. The range includes fee-free products. Remortgage customers will benefit from free-assisted valuations and legal advice.

Andrew Hagger of Moneycomms said: “It is good to see a provider entering the mortgage market with such a competitively priced range of products across the full range of LTVs. The added bonus of a shopper reward is an innovative move that makes the deal even more appealing for Sainsbury’s shoppers – the option to earn up to £400 vouchers off shopping over two years is not to be sniffed at.”

David Hollingworth ofL&C Mortgages, said: “We welcome more competition in the mortgage market and particularly from those entrants that have put real customers at the heart of their design. We’re delighted to be working with Sainsbury’s Bank as initial intermediary pilot partner.”

Customers applying over the phone can call 0345 111 8005 between 8am and 9pm Monday to Friday or between 9am and 4pm on Saturdays and 10am to 1pm on Sunday.